Support

A cookie is a piece of data stored by your browser or device that helps websites like this one recognize return visitors. We use cookies to give you the best experience on BNA.com. Some cookies are also necessary for the technical operation of our website. If you continue browsing, you agree to this site’s use of cookies.

Events

Bloomberg Next marketing services allow clients to elevate their brands and extend their reach through our established and trusted expertise, enhanced with engaging event production, appealing design, and compelling messaging.

Those looking for clarity from the Trump administration on border adjustments are
still seeking it after a spate of contradictory news.

Interpreting President Donald Trump’s remarks and sometimes opposing verbiage from
his deputies is risky business, according to lobbyists who spoke with Bloomberg BNA
on condition of anonymity to protect client sensitivities.

The bottom line, they said, is that it simply is too early to know where Trump stands
on House Republican leaders’ preferred plan to buttress their broad tax reform proposal
with a provision to tax imports and exempt exports.

Not even House Ways and Means Committee Chairman Kevin Brady (R-Texas) would say the
plan has Trump’s backing yet.

“I don’t want to speak for the president,”
Brady told Bloomberg BNA after addressing the Conservative Political Action Conference
meeting Feb. 24, a day after Trump said in a Reuters interview that U.S. employment
would benefit from some sort of tax.

“I certainly support a form of tax on the border because everybody else does, Trump
said in the interview, adding that “companies are going to come back here, they’re
going to build their factories and they’re going to create a lot of jobs and there’s
no tax.”

Continued Confidence

Brady was unwavering in his expectations, saying he remains confident that border
adjustments would be part of the final tax reform package.

“I think we’re trying to achieve the exact same goal, which is to bring American jobs
back to the United States and have everyone play by the same tax rules here,” Brady
said. “I’m encouraged by it because we’re headed in the same direction.”

In his own speech earlier in the day at the CPAC meeting, Trump said nothing about
border adjustments.

“We’re going to massively lower taxes on the middle class, reduce taxes on American
business and make our tax code more simple and much more fair for everyone, including
the people and the business,” Trump said.

To Recap

But Treasury Secretary Steven Mnuchin cast some doubts in separate interviews on CNBC
and Fox Business Network the same day, noting “concerns” with the border adjustment
idea while also saying it remains part of the discussion.

Then the news outlet Axios reported Feb. 24 that the head of the president’s National
Economic Council, Gary Cohn, another key economic adviser to Trump, opposed the border
adjustment plan before the Trump administration later denied the assertion the same
day.

White House officials and House Republicans will continue to work in concert to arrive
at an agreement, Brady said.

“We’re narrowing the differences,”
he said. “We continue to work on ways to improve almost every element of it, and we’re
having really good healthy discussions with the Trump economic team.”

Wait and See

But those expecting a firm position from the Trump administration on border adjustability
will just have to wait and see for now.

The president’s address during the Joint Session of Congress Feb. 28 remains another
window of opportunity for him to address the controversial issue outside of his usual
paeans to tax reform.

“White House support for the border adjustment tax would be a game change. (translation:
it’s on the ropes),”
a tax lobbyist said in an e-mail. “I also thought Mnuchin was pretty forthcoming when
he said the August recess is an ambitious deadline for enacting tax reform and very
well could slip until later this year.”

“And if they’re struggling with the stuff Republicans should be able to agree on,
wait until we get to trade and infrastructure. Republicans are learning that governing
is difficult,” the lobbyist said.

Another lobbyist said people were reading too much into Trump’s comments about the
tax on Feb. 23. “Political staff like it. Economic policy staff hate it,” the lobbyist
said. “I’m told by White House staff that he’s going to stay out of the fight.”

To contact the reporters on this story: Kaustuv Basu in Washington at
kbasu@bna.com and Aaron E. Lorenzo in Washington at
aaron@bna.com

To contact the editor responsible for this story:
Meg Shreve at
mshreve@bna.com

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)